The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Tuesday, August 9, 2011

Old man of ASX market: "The most extraordinary day ever"

Richard Coppelson (aka "Coppo") of Goldman Sachs is one of the oldest, wisest and most well-liked guys in the sharemarket. Here is an excerpt of his fascinating summary of today's events (nb: from a clearly supportive, long equities perspective):

"The market has been belted up by the bear trying to get us in the last 21 days… But this afternoon we stood up and shouted…We’re BACK !!!!

Today was one of those rare days that you will never forget –we saw the greatest one day recovery in the Australian market where the ASX 200 rallied +268 pts or +7.11% from its low and closed higher, up +1.22% on the day – I have never seen anything like this before – it was truly extraordinary...

Early on we saw more carnage with the ASX 200 smashed -225 points or -5.5% early on, after last night’s -6.6% collapse in the S&P 500 - its largest drop in nearly three years on rising fears of a recession exacerbated by the United States' loss of its triple-A credit rating. Also every single one of the S&P 500 stocks closed lower in US last night – this not seen since 1986...

So the scene was set for a shocker & with margin selling mid morning...But we saw big instos buying slowly enter the market in arvo ASX200 rallied +268 points off its low to close up +48pts or +1.22%, which was a great performance after a morning rout that saw the us hit a low of 3765 -220 points or -5.5%. Other mkts followed....Korea rallied +8.5% of its low and China was +3.8% off its low and China was up when we closed...

This Table from Matt Ross, shows the largest intra-day moves on the ASX 200 for the past 35 years on days where the market ended up being within +/-1% on the day. Puts some context around the change in sentiment today and how the instos were really prepared to come in and buy this dip. The volatility was something that even all the oldest guys on the desk said they had never experienced like this before..."

I love this column , which echoes my views on the subject (see here ). Excerpt below... IF the value of your total assets fell by 6 per c...

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I first started blogging on ideas relating to economics, finance, investments and housing following an invitation from Business Spectator. Please note that I may have an economic interest in any of the items discussed here. You should also be aware that these are my own personal views and do not represent the opinions of any other individual or institution. This material is not intended to provide, and should not be relied upon for, investment advice or recommendations. Readers are urged to seek professional advice before making any investments. Call 1800 YBR YBR to find a financial planner near you.

About Me

While this is a personal blog, professionally Chris is a director and strategic advisor to a number of funds management and financial services companies. In 2009 The Australian newspaper selected Chris as one of Australia’s top 10 “Emerging Leaders” in its economics category. In 2007 Chris was selected by The Bulletin magazine as one of Australia's "10 Smartest CEOs" and by BRW Magazine as one of "Australia's Top 10 Innovators". He previously worked for Goldman Sachs and the RBA. In 2008-09, the Australian Government invested $20 billion in a radical policy proposal developed by Chris to provide liquidity to Australia’s securitisation market. In February 2009, Chris was invited by the Rockefeller and MacArthur Foundations to present innovative policy solutions at the private Transforming America’s Housing Policy summit for Obama Administration officials. Chris served as a Director of The Menzies Research Centre from 2003-07. He has published widely on matters relating to financial economics, and is a regular TV and media commentator. He is a Research Affiliate with the Centre for Ideas and The Economy at Melbourne Uni.